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2017 (9) TMI 834 - AT - Income TaxAssessment u/s 153C r.w.s. 143(3) - assessment framed not based on any incriminating material/document - Held that:- Notice u/s 143(2) became time barred as on 30.11.2007, whereas search took place much later on 31.10-2009. Therefore, it follows that as on the date of search, there was no pending assessment. Subsequently, the A.O. initiated proceedings under s. 153A and in the assessment completed under s. 143(3) r.w.s 153A without any incriminating material found during the course of search and addition of ₹ 1.50 crore was made on the basis of disclosed loan of this amount in the audited accounts. Once this is the position the issue is clearly covered in favour of assessee and against the Revenue by the decision of Hon’ble Bombay High Court in the case of Continental Warehousing Corporation (Nhava Sheva) Ltd. 2015 (5) TMI 656 - BOMBAY HIGH COURT). Respectfully, following the same and in the given facts, we are of the view that this loan of ₹ 1.50 crore accounted for in the balance sheet for the year ending 31-03-2006 is disclosed in the return of income as evidence by the audited accounts and which has not been abated, the amount of loan cannot be added. Accordingly, we reverse the orders of CIT(A) as well as that of the AO and delete the addition made by the AO. This jurisdictional issue of the assessee’s appeal is allowed.
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